Teijin : Consolidated Financial Statements Summary (For the nine months ended December 31, 2016)

(For the nine months ended December 31, 2016)

English translation from the original Japanese-language document

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan) February 6, 2017

Company name : TEIJIN LIMITED (Stock code 3401)

http://www.teijin.com

Contact person : Yoshiki Kaieda General Manager, TEL: +81-(0)3-3506-4395

Finance & Investor Relations Department

1. Highlight of the third quarter of FY2016 (April 1, 2016 through December 31, 2016)

   (Amounts less than one million yen are omitted)

2. Consolidated financial results (Percentages are year-on-year changes)

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent
   For the nine months ended December 31, 2016	Million yen %	Million yen %	Million yen %	Million yen %
   	535,180 -9.5	43,614 -21.4	45,782 -19.4	34,065 -2.5
   For the nine months ended December 31, 2015	591,293 2.2	55,488 125.9	56,808 96.1	34,922 ―

   cf. Comprehensive income for the nine months ended December 31, 2016 : 48,629 million yen (For the nine months ended December 31, 2015 : 31,330 million yen)

   E.P.S. *	Diluted E.P.S. *
   For the nine months ended December 31, 2016 For the nine months ended December 31, 2015	Yen 173.23 177.65	Yen 157.06 161.19

   * E.P.S.: Earnings per share

   *The Company consolidated its common shares at a ratio of five shares to one share on the effective date of October 1, 2016. Accordingly, the earnings per share and the earnings per share after adjustment for dilution are calculated on the assumption that the consolidation of shares is conducted at the beginning of the preceding fiscal year.

3. Consolidated financial position

4. Total assets	Net assets	Shareholders' equity ratio
   As of December 31, 2016	Million yen	Million yen	%
   	905,816	354,298	37.6
   As of March 31, 2016	823,429	314,412	36.4

   cf. Shareholders' equity as of December 31, 2016 : 340,481 million yen (As of March 31, 2016 : 300,112 million yen)

5. Dividends

   Period	Dividends per share
   	1Q	2Q	3Q	4Q	Annual
   FY2015	Yen	Yen	Yen	Yen	Yen
   	―	3.00	―	4.00	7.00
   FY2016	―	5.00	―
   FY2016 (Outlook)	25.00	―

   Note: Revision of outlook for dividends in the third quarter: No

   *The Company consolidated its common shares at a ratio of five shares to one share on the effective date of October 1, 2016. Accordingly, the amount of the year-end dividend per share for FY2016 (Outlook) reflects the impact of the consolidation of shares and disclosure of the annual dividend per share is omitted. Excluding the impact of the consolidation of shares, the year-end dividend per share for FY2016 (Outlook) would be 5 yen and the annual dividend per share would be 10 yen. For information, refer to "Appropriate Use of Forecasts and Other Information and Other Matters"

6. Forecast for operating results in the year ending March 31, 2017 (FY2016)

   (Percentages are year-on-year changes)

   Net sales	Operating income	Ordinary income	Net income	E.P.S. *
   FY2016	Million yen % 740,000 -6.4	Million yen % 56,000 -16.6	Million yen % 55,000 -8.8	Million yen % 37,000 19.0	Yen 188.14

   Note: Revision of outlook for FY2016 consolidated operating results in in the third quarter: Yes

   * Earnings per share under the forecast for operating results in the year ending March 31, 2017 (FY2016) reflects the impact of the consolidation of shares. For information, refer to "Appropriate Use of Forecasts and Other Information and Other Matters"

   Appropriate Use of Forecasts and Other Information and Other Matters

7. Cautionary statement on forward-looking statements

   All forecasts in this document are based on management's assumptions in light of information currently available and involve certain risks and uncertainties. Actual results to differ materially from these forecasts. For information on these forecasts, refer to "Qualitative Information on Outlook for Operating Results", beginning on page 7.

8. Dividend outlook and forecast for operating results after the consolidation of shares

   The Company consolidated its common shares at the ratio of five shares to one share on the effective date of October 1, 2016, following approval of a proposal for the consolidation of shares at the 150th Ordinary General Meeting of Shareholders held on June 22, 2016. Accordingly, the dividend outlook and forecast for operating results in the year ending March 31, 2017 (FY 2016) excluding the impact of the consolidation of shares are as follows.

9. Dividend outlook for the year ending March 31, 2017

   Dividends per share: Interim 5 yen (Note 1), Year-end 5 yen (Note 2)

10. Forecast for operating results in the year ending March 31, 2017 (FY 2016) E.P.S.: (Year-end) 37.63 yen

    Notes:

11. The interim dividend will be paid out based on the number of shares before the consolidation of shares.

12. Represents the dividend amount excluding the impact of the consolidation of shares.

13. The annual dividend for the year ending March 31, 2017 (excluding the impact of the consolidation of shares) is 10 yen per share.

14. 1. Qualitative Information and Financial Statements Qualitative Information on Results of Operations Analysis of Consolidated Results of Operations

    Global economic conditions in the nine months ended December 31, 2016 tracked a gradual recovery path, partly reflecting signs of an upturn, along with positive expectations for the policies of the new U.S. administration and the weaker yen reflecting those expectations. However, they still faced an increasingly uncertain geopolitical and economic outlook. Meanwhile, the Japanese economy was not so strong, as could be seen by slowing growth in personal consumption and other factors.

    In this environment, for the nine months ended December 31, 2016, consolidated net sales declined 9.5% to ¥535.2 billion. This decline was due in part to the impact of optimizing our production configuration associated with restructuring initiatives in the resin business, in addition to the stronger yen, although sales were generally steady across all businesses on the whole. Operating income decreased 21.4% to ¥43.6 billion, due in part to the impacts of foreign exchange movements and new drug licensing costs, despite efforts to steadily expand the earnings base by driving growth in existing businesses and executing restructuring initiatives. Ordinary income decreased 19.4% to

    ¥45.8 billion. Meanwhile, profit attributable to owners of parent was held to a decrease of 2.5% to ¥34.1 billion, due in part to a decline in tax expense, reflecting the impact of changes in tax effect accounting, as well as declines in impairment loss and business structure improvement expenses. Earnings per share declined ¥4.42 to ¥173.23.

    Business Segment Results Advanced Fibers and Composites

    Sales in the Advanced Fibers and Composites segment totaled ¥85.9 billion, while operating income was ¥10.6 billion.

    High-Performance Fibers

    Sales remained firm for automotive applications.

    In aramid fibers, sales of Twaron para-aramid fibers expanded firmly for automotive applications, including for tires in Europe. In contrast, sales for oil drilling and ballistic protection applications were weak. Sales were firm for Technora para-aramid fibers both for automotive applications in Japan and also for infrastructure-related applications overseas. Technora is being used in an expanding range of applications under more extreme conditions given the positive assessment of its outstanding fatigue resistance, chemical barrier and other properties.

    Sales of Teijinconex meta-aramid fibers were robust for use in automotive applications such as turbocharger hoses, as well as protective clothing and industrial applications, despite persistently fierce competition in the growing market for filter applications. Moreover, at a new production facility in Thailand, where production and sales commenced in the previous fiscal year, we are focused on expanding this particular business in promising Asian markets and emerging markets, where high growth is expected against the backdrop of increasingly stringent regulations pertaining to flame-retardant materials and environmental safety.

    In polyester fibers, solid sales were recorded for automotive applications and for use in personal hygiene products, wadding, and reverse osmosis membrane support layers for water treatment applications. Moreover, we are striving to further strengthen our competitiveness by realigning our domestic production configuration and transferring production of certain items to subsidiaries in Thailand.

    Carbon Fibers and Composites

    Sales for use in aircraft grew steadily; U.S.-based Continental Structural Plastics acquired.

    Sales of TENAX carbon fibers continued to grow steadily for use in aircraft, reflecting firm orders from aircraft manufacturers. Among other applications, sales for wind power generation in the Americas and Europe were robust, but the supply-demand balance softened for general industrial use, and for sports and leisure applications in Asia. In addition, Pyromex Oxidized PAN fiber has continued to post steady sales, reflecting favorable demand for use in aircraft brake pads. In response, a carbon fiber production line is being converted into a Pyromex production line at Toho Tenax America, Inc..

    We are working to expand business centered on composite materials in the field of high-performance materials to be used in mass-produced automotive components. As part of these efforts, in January 2017, we acquired Continental Structural Plastics Holdings Corporation (Headquarters: Michigan, U.S.A.; "CSP"), a global leader in automotive lightweight composite technologies. CSP became our wholly owned subsidiary. Going forward, we will integrate CSP's glass fiber reinforced plastic (GFRP) and our fiber reinforced plastic (FRP) technologies, specifically carbon fiber reinforced thermoplastic (CFRTP) and carbon fiber reinforced plastic (CFRP), along with driving growth of CSP's components business model in the Americas and global market expansion of this business model to Europe, Japan and Asia. Through this process, we will establish a strong business platform in automotive composite products and will seek to become a supplier of Tier 1 components in this business. Moreover, we will accurately grasp automakers' requirements for environmental impact reduction in response to tighter environmental regulations around the world, along with their requirements for cost reductions. Mindful of this, we will produce lightweight body components, reduce the number of parts, and improve recyclability, thereby offering added value that is greater than that of existing components.

    Furthermore, to address further growth in demand for carbon fiber primarily in North America, we have completed the acquisition of land in the United States for a project to construct a new carbon fiber plant.

    Electronics Materials and Performance Polymer Products

    The Electronics Materials and Performance Polymer Products segment reported sales of ¥102.0 billion and operating income of ¥15.0 billion.

    Resin and Plastics Processing

    Steady performance by polycarbonate resins, with a focus on the development and sales of high-performance products.

    Market conditions remained relatively stable for our mainstay Panlite and Multilon polycarbonate resin products. These products maintained steady profitability, owing to an improved sales mix and the positive effects of restructuring initiatives, including high capacity utilization maintained at both production sites in the PRC and Japan, despite a reduction in profits due to the impact of foreign currency conversion reflecting the stronger yen.